UPDATE 1-Brazil industry output falls at fastest pace since 2013

(Adds background, PMI data, table)
BRASILIA, April 1 (Reuters) - Brazil's industrial output
fell in February at the fastest pace in more than two years,
dragged down by a further steep decline in production of durable
goods such as cars and home appliances, government data showed
on Friday.
Output at factories and mines fell a seasonally adjusted 2.5
percent in February from January, erasing the
unexpected gains seen in January when there was a 0.4percent
increase, statistics agency IBGE said.
The data marked the steepest monthly decline since December
2013, IBGE said. It was slightly worse than the median estimate
in a Reuters poll of economists that had projected a decline of
2.3 percent.
Production in February retreated 9.8 percent from a year
earlier.
Brazil's economy has been going through the second year of
what is expected to be its worst recession in more than a
century. The central bank sees the economy shrinking 3.5 percent
this year following a contraction of 3.8 percent in 2015.
One ray of hope for manufacturing came in a privately
conducted survey for March, which showed it contracting at a
slower rate than in February.
The Purchasing Managers' Index, compiled by
research firm Markit, rose to a seasonally adjusted 46.0 in
March, up from a three-month low of 44.5 in February.
The headline PMI index remained well below the 50 threshold
that indicates activity growth. However, new export orders rose
at the fastest pace in 6-1/2 years after Brazil's currency, the
real, weakened to near record lows.
(Percent change) m-m y-y
Capital goods 0.3 -25.8
Intermediate goods -2.0 -8.5
Consumer goods -3.2 -8.1
Durable consumer goods -5.3 -29.3
Semi-durable and non-durable consumer -0.6 -2.0
goods
Industrial output -2.5 -9.8
(Reporting by Silvio Cascione Editing by W Simon)